Mid-West Electric Consumers Association Board Meeting Mark A. Gabriel Administrator

Thank you, Tom

State of Western’s Assets 1 3

Operational Focus Western operates and manages on a distributed basis First pathway in the roadmap focuses on business, technology and organizational excellence Provide staffing and support where it is most logical and cost effective Streamline where possible to keep costs low

Functions and Locations 1 6

Roadmap 2024

Strategic Targets Power and Transmission-related Services Energy Infrastructure Partnership and Innovation Asset Management Safety and Security Communication Human Capital Management 1 8

Asset Management Comprehensive, data-driven program Knowing the health and condition of our assets contributes to the safety of our employees who maintain that equipment. 1 9

Human Capital Management Aging workforce, rapidly changing industry Shortage of mission-critical craft workers Focus on effective workforce planning and succession planning Ensure the right people, properly trained, in the right places 1 10

Enterprise Risk Management

Roll up of 10-year Capital Investment Plans

Washington Updates Western is staying actively engaged in DC – Detailed staff to support QER – Cycling staff through WLO as part of our leadership development Seat at the table on the ESCC – Participating in playbook, transformer initiative, GridEx, public affairs outreach Responding to amortization and related requests from BOR and COE Regular meetings and engagement with DOE and Congressionals

Presidential Expectations Presidential call for efficiency and effectiveness reforms across government Sec. Moniz committed to improving DOE management functions (Western’s HR authority is delegated from DOE). DOE Human Capital strategic plan, provided to President, includes reduction of per-employee cost 50% DOE-wide, including all of the PMAs. DOE Chief HCM Officer conducted 120-day study, recommended hybrid Shared Service Center (SSC) approach to Secretary. Secretary accepted recommendation.

Washington Update: Human Resources Study HR Authority Delegated from the Department of Energy Western among the Best in Government Class: – High service ratio (1:54) – Lowest cost ($2,042/employee/year) – Effective HR management Verified/measured by OPM/IG audits – 24 staff members located in Lakewood supporting all of Western with: Position management Recruitment, hiring, onboarding Labor relations Disciplinary actions – 1 Staff member in each Western region to assist with labor relations and related

SSCs – Shared Service Centers Current: DOE HR authority is highly delegated to 17 sites = Risk, cost, and inefficiency for DOE. To be: Hybrid approach - Shared Service Centers (SSCs) across DOE SSCs will be aligned by similar business lines. There will be a PMA-specific Shared Service Center. – HR operations will report to DOE HR. – SSCs will manage the transactional aspects of HR. – HR experts will be/remain on-site at each PMA to give daily support. Location of PMA SSC is to be determined. DOE preparing evaluation criteria to select location 4 SSCs – PMA would likely be last formed, est. mid-late 201 6

Western is competing to have the SSC We are committed to ensuring lower cost and higher service ratios for Western, regardless of location of SSC. We are actively participating wherever we can, and in helping create the evaluation criteria for selection of location. We are actively working to keep a local presence focusing on PMA-specific needs. We are making it clear that we are 91% customer funded. Savings will come back to Western.

Our Commitments